State misses chance to control health exchanges

Friday, March 29, 2013

Senate Republicans in Michigan talk a good story, but when it comes to keeping the federal government out of the state’s business, they don’t walk the walk.

Recently, their inaction meant that the state not only lost $31 million in federal funds but the federal government, not the state, will set up the health exchanges where Michigan residents will sign up to be medically covered by the Patient Protection and Affordable Care Act, commonly known as ObamaCare.

The Affordable Care Act goes into full effect Jan. 1, 2014.

Republican Gov. Rick Snyder called upon his party to partner with federal officials on overseeing that the health plans offered by insurance companies on the exchanges best serve the people.

That was Thursday, the last day to act before lawmakers take a two-week break.

Because the GOP-dominated Senate voted against spending the $31 million federal grant for the partnership exchange, the state now has to spend about $8 million of its own money to link computer systems to the federal exchange, Snyder spokesman Kurt Weiss said.

This situation is unfortunate because Michigan taxpayers are getting stuck with an $8 million bill instead of receiving $31 million from the feds.

It also contradicts the Republican complaint that the federal government is too big and intrusive in state affairs.

With the federal government having control of the exchanges, it means the tentacles of big government will reach further into state control.

Our lawmakers should realize the medical industry in the United States comprises about 17 percent — $2.13 trillion — of the nation’s Gross Domestic Product, which totaled $15.09 trillion in 2011, the latest available figures.

The exchange will be used to determine people’s eligibility for Medicaid. It also will decide if Michigan residents qualify for federal aid in paying medical premiums, based on a family’s income.

For those without computers, there will be people to call to help them buy insurance.

The partnership between the state and federal governments would have let Michigan handle in-person customer service functions and manage insurers who offer health plans on the exchange and “navigators” responsible for outreach, education and enrollment.

Apparently, it wasn’t obvious to our lawmakers that giving the state a role would save us from another layer of regulation and enrollment.

We need less red tape, not more.

The probable outcome is that many of those who need medical coverage in Michigan and would receive help in paying premiums aren’t going to get the help they need. That could cost lives that would be saved with prompt, effective medical treatment.